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Luckin Coffee will launch in Malaysia. Causing strong competition with Starbucks… Luckin Coffee prepares to launch for the first time in Malaysia. It’s a big challenge for Starbucks, which is struggling to maintain control. Competition in the Malaysian coffee market is expected to be intense. HEXTAR INDUSTRIES BHD today announced that The company has signed a strategic partnership agreement with Luckin Coffee Holding (Singapore). The agreement gives HIB exclusive rights to develop, open and operate Luckin Coffee stores across Malaysia 10 years, with the option to renew for two additional 5-year terms.
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HIB said the partnership is an opportunity to capitalize on the rapid expansion of Luckin Coffee, one of the fastest growing coffee brands in the world. It is also an important milestone in the company’s new development phase. It aims to tap the huge potential of the food and beverage market by creating new revenue streams. and provide consumers with a coffee experience driven by cutting-edge technology… Luckin Coffee was founded in 2017 and has grown rapidly, with 21,343 locations worldwide as of Q3 2024 alone. According to Luckin Coffee’s third quarter financial report, the company added 1,382 new stores, up 6.9% from the second quarter of 2024, with a net value of .326 billion yuan, generating revenue for its monthly subscriber base of yuan ( approximately RM800 million) 79.8 million people, an increase of 36.5% compared to last year. To date, Luckin Coffee has served more than 300 million customers across China and Singapore.
image source: Facebook/ luckin coffee Singapore)
First Outlet to Open Next Year
HIB major shareholder, Datuk Eddie Ong, expressed in a statement that coffee culture is rapidly evolving. With Luckin Coffee’s value-driven pricing and technology-driven approach, he is confident this partnership will unlock new growth opportunities for the company.
HIB plans to launch Luckin Coffee’s first outlet in Malaysia in Q1 2025 and is committed to driving the brand’s rapid expansion across the country.
Interestingly, a report by Chinese media in August revealed that Luckin Coffee had engaged in preliminary discussions with Tan Sri Vincent Tan’s Berjaya Food (BJFOOD, 5196, Main Market Consumer Stock) to explore a joint-venture model for entering the Malaysian market. However, with Hexind now signing the partnership agreement with Luckin Coffee, these rumors have been effectively dispelled.
